All Forum Posts by: Jake Mercer

Got ya! I will post there, instead. Thanks!

Our STR management company, One Jozzby, is growing into the luxury vacation rental market in Raleigh, NC. I'm proud to announce that our management portfolio is growing within the state North Carolina. We believe this new addition will be one of the strongest performing short term rentals in the Triangle and will offer some of the top amenities. If you have a luxury home or a home you're considering running as a short term rental, please reach out for free projections on what you could earn with your property as a Short Term Rental!

 I love that! Yeah it seems to be the "doom and gloom" around YouTube and a few posts on here as well. Thanks for commenting : )

 We started a management company to manage our current arbitrage units and now we manage other client's properties. Arbitrage to management to acquisition seems to be a good path if you're starting out without a lot of capital.

"Airbnb is dead." "Rental Arbitrage is an outdated business model." How many people have you heard this from?

Well..everyone's story is different. I started Airbnb arbitrage 4 years ago and here's why I'm quitting the arbitrage business.

I'm quitting because I don't need to do it anymore! I used rental arbitrage to scale from $10k in my pocket to nine arbitrage properties in less than 2 1/2 years and then used that cash flow and profit to hire a full time operations manager, build a STR property management business with a partner and work with investors to purchase properties out of state.. We manage 7 STR properties and just bought 2 single family homes and a tiny home. All that will be rented out on Airbnb! Not to mention our existing airbnb arbitrage portfolio ;

I say all this because, for me.. rental arbitrage was a stepping stone to building a business in real estate. And while it might not be attractive to all real estate investors, I believe it can be a fantastic way to start to build experience, build profit/cash flow and establish yourself as a STR professional in your market and then use that to build a co-hosting/management business and work with investors that want to you use their knowledge and expertise to partner on projects.

Point is, don't believe everything everyone says about what is "bad" and what is "good". I know people making $20k+ months couch flipping and investing in vending machines. Don't knock the hustle, just knock the operator. Become great at what you do and you can make any vehicle a success. We will do over $750k this year in revenue form our Airbnb portfolio and that's because I took a leap of faith in myself to start an Airbnb arbitrage business 4 years ago. 

Rental arbitrage isn’t what it used to be.

2024 will be more competitive than ever for those getting into the space

Steal my top FIVE qualifications for what makes a profitable airbnb arbitrage property.

1.) You need to know that the average daily rate will cover your fixed monthly expenses (rent, utilities, insurance, vendor services) at 40% occupancy!

40% occupancy is 12 days of the month.

This will be less than 5% of the deals you find on zillow or hotpads. That’s the truth.

Gone are the days you can furnish grandma’s guest house and make money on it on Airbnb.

2.) Pick a house that is completely renovated. Don’t waste your time otherwise.

The last thing you want to be doing in rental arbitrage is doing minor repairs to the house.

Even if the landlord pays for it according to the lease, the issue is you’ve got to front it so you can get it done to avoid vacancy or bad reviews.

Be in the business of hospitality, not real estate. Find a property with updated kitchen, bathroom, updated fixtures, no carpet and brand new appliances.

Trust me, you’ll thank me later.

3.) If it doesn’t make money, it doesn’t make sense. Don't get emotional!

You found a “sick” property for Airbnb but the rent is too high.

Rent is 3.5k but it will only make 5k/mo.

Don’t get emotional. Arbitrage is about the margins and profits.

Aim for higher margins by selecting properties that are nice but will yield more value once they’re furnished and set up

4.) Location Matters: 

Don’t be afraid to leave your backyard.

Choose a property in a strategic location that attracts tourists or business travelers.

Proximity to popular attractions, amenities, and transportation hubs can significantly impact your property's demand and occupancy rates.

5.) Understand Local Regulations: Dont forget to do your re

search.

Keep abreast of local regulations and zoning laws related to short-term rentals.

Compliance is crucial to avoid legal issues and fines.

Select a property in an area with Airbnb-friendly regulations, ensuring a smoother operation

It does take hard work and is by no means a "passive" approach that other Airbnb "gurus" may advertise. If you're starting with rental arbitrage, like I did, it will be a hustle but can work if you know what you're doing. Absolutely. I'll shoot you a message and we can set something up.

 Glad you found value you in it! Appreciate the comment : )

 Hey Logan, thanks for commenting! I appreciate the kind words : ) At first I did, but then I cleaned up my approach and pitch. A lot of landlords will say no but there's a good group of them that see the value in it and prefer working with us and our team.

 Thank you for the feedback and reading my post Richard! I've heard similar thoughts before from other investors on this forum. I still have 100% of my str units from that time frame and we are growing our management services for short term rentals in small and bigger markets in NC/WV areas and they are still performing well. A large voice of concern for Airbnb's comes form increased regulations, mom and pop operators, and other Airbnb hosts that do not know what they're doing with pricing, marketing, market selection, budget allocation, etc...

Everyone's story is different. Also, I did not buy properties, I did rental arbitrage which is what I teach some people how to do : ) Wish you the best!

@Richard Elvin